Saturday, 17 August 2019

US economic data on Friday were mostly weak. The University of Michigan’s consumer sentiment survey fell to 92.1 in August from 98.4 in July. US housing starts fell 4 percent but building permits rose 8.4 percent.

European stocks were lifted by indications that the German government would allow deficit spending if necessary to combat a recession.

Hulbert noted that sentiment did not deteriorate enough during the recent market decline to build enough “wall of worry” among investors to support a tradable rally.

“The U.S. stock market hasn’t yet hit a correction low,” he wrote. “The bulls have begun to retreat, which is a step in the right direction. But contrarians are betting that more bulls will have to throw in the towel before a tradable bottom is at hand.”